Private Activity in Transport Down for Second Consecutive Year, But Still Around Peak Levels
Private activity in transport declined in 2008, with the full onset of the financial crisis driving a slowdown in the second half of the year. Yet while investment commitments to transport projects with private participation were down from the peak...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2009/11/11893222/private-activity-transport-down-second-consecutive-year-still-around-peak-levels http://hdl.handle.net/10986/10963 |
| Summary: | Private activity in transport declined
in 2008, with the full onset of the financial crisis driving
a slowdown in the second half of the year. Yet while
investment commitments to transport projects with private
participation were down from the peak levels of the previous
two years, they remained strong at the third highest level
in 1990-2008. In 2008, 56 transport projects with private
participation reached financial or contractual closure in 26
low- and middle-income countries. These involve investment
commitments (hereafter, investment) of US$23.1 billion.
Transport projects implemented in previous years had
additional commitments of US$2.9 billion, bringing total
investment in 2008 to US$26 billion. That represents a drop
of 10 percent from the level reported in 2007. Lower
payments to governments (such as concession or lease fees
and divestiture revenues) account for the decline. By
contrast, investments in physical assets, which amounted to
US$22.6 billion in 2008, were up 3 percent from those
reported in 2007. The number of projects continued a marked
declining trend. The 56 projects reaching closure in 2008
reflected a 40 percent decline from the level in 2007 and a
53 percent drop from that in 2006. The closure of larger
projects explains the divergence in trends between
investments and number of projects. The average project size
grew from US$150 million in 2004 to US$410 million in 2008,
while the median rose from US$57 million to US$230 million. |
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